Apparatus and method of identifying an overstated perpetual inventory in a retail space

ABSTRACT

Methods and apparatuses are provided to automatically identify overstated perpetual inventory (PI) conditions regarding an inventory level of an item in a retail space. For example, in some embodiments, a method performed by a control circuit comprises determining ( 504 ) that, a plurality of times, an item for sale at a retail store sells within a defined tolerance of a non-zero inventory quantity value and then stops selling for a period of time; and making ( 506 ) a determination that an overstated PI condition exists with respect to an inventory level of the item at the retail store. In some embodiments, the overstated PI condition is automatically quantified and may be automatically corrected.

RELATED APPLICATIONS(S)

This application claims the benefit of U.S. Provisional Application No.62/005,827, filed May 30, 2014, which is incorporated by reference inits entirety herein.

TECHNICAL FIELD

This invention relates generally to accuracy of inventory in a retailenvironment.

BACKGROUND

In a retail environment, accuracy of inventory can be important to aneffective and efficient supply chain. For example, inventory records areused in forecasting, ordering and replenishment of products.Traditionally, actual and accurate knowledge of a retailers' on handinventory of products is difficult to obtain. Many factors can throw offthe true on hand inventory, such as errors in products shipped/received,losses, data errors, improperly processed product returns, etc. Thus,retailers only have accurate information as to what inventory the systemthinks is on hand, which is referred to as perpetual inventory (PI).

Overstated PI with respect to an inventory item is a condition where theperpetual inventory is a higher number than the actual number of unitson hand for the item. In other words, the PI is overstated since thereis less actual inventory than indicated by the system. Overstated PI maybe referred to as phantom inventory and can have a negative effect onthe retailer. One serious consequence of overstated PI is that items forsale may become out of stock without regular replenishment or may evennot reach a replenishment point, resulting in missed product sales.

BRIEF DESCRIPTION OF THE DRAWINGS

Disclosed herein are embodiments of apparatuses and methods pertainingto determining whether an overstated perpetual inventory conditionexists regarding an inventory level of an item for a retail setting.This description includes drawings, wherein:

FIG. 1 is a block diagram in accordance with several embodiments.

FIG. 2 is a block diagram in accordance with several embodiments.

FIG. 3 is a diagram illustrating an exemplary situation in which an onhand iteminventory level may be accurate in accordance with severalembodiments.

FIG. 4 is a diagram illustrating an exemplary situation in which an onhand iteminventory level may be overstated in accordance with severalembodiments.

FIG. 5 is a flow diagram of an automated method in accordance withseveral embodiments.

FIG. 6 is an exemplary algorithm in accordance with some embodiments.

FIG. 7 is another exemplary algorithm in accordance with someembodiments.

Elements in the figures are illustrated for simplicity and clarity andhave not necessarily been drawn to scale. For example, the dimensionsand/or relative positioning of some of the elements in the figures maybe exaggerated relative to other elements to help to improveunderstanding of various embodiments of the present invention. Also,common but well-understood elements that are useful or necessary in acommercially feasible embodiment are often not depicted in order tofacilitate a less obstructed view of these various embodiments of thepresent invention. Certain actions and/or steps may be described ordepicted in a particular order of occurrence while those skilled in theart will understand that such specificity with respect to sequence isnot actually required. The terms and expressions used herein have theordinary technical meaning as is accorded to such terms and expressionsby persons skilled in the technical field as set forth above exceptwhere different specific meanings have otherwise been set forth herein.

DETAILED DESCRIPTION

Generally speaking, pursuant to various embodiments, systems,apparatuses and methods are provided herein useful to automaticallydetermine whether an overstated perpetual inventory (PI) conditionexists regarding an inventory level of an item in a retailestablishment. In some embodiments, the overstated PI condition may bequantified and the PI of the system adjusted such that the PI moreclosely matches (or precisely matches) the actual on hand inventory. Insome embodiments, a method performed by a control circuit comprisesdetermining that, a plurality of times, an item for sale at a retailstore sells within a defined tolerance of a non-zero inventory quantityvalue and then stops selling for a period of time; and to making adetermination that an overstated perpetual inventory (PI) conditionexists with respect to an inventory level of the item at the retailstore.

Referring now to FIG. 1, a system 100 is shown including a controlcircuit 102 coupled to an inventory control system 104 (e.g., via link110) and to one or more inventory databases 106 (e.g., via link 112).The databases 106 store cyclic sales data such as on hand inventoryvalues for a plurality of items, such as items for sale in a retailstore. For example, the databases 106 store, for each of a plurality ofitems, the number of units of the item sold in a given period of time(e.g., in a day) at a given store and/or the on hand value of the item(i.e., the total number of units of the item in a given store at aparticular moment in time). In a typical retail setting, the databases106 may store cyclic sales data for many items being sold. For example,the databases 106 may store sales data and/or inventory levels for least100 different items for sale by the retail store; at least 1,000different items for sale by the retail store; or at least 10,000different items for sale by the retail store.

In accordance with some embodiments, the control circuit 102 receivescyclic sales data and/or inventory levels for one or more items beingevaluated to determine if an overstated PI condition exists. Embodimentsof this process are described further herein. The control circuit 102may be located at a given retail store location and receive and processsales data for items sold at that location, i.e., the control circuit isa decentralized system for determining and quantifying overstated PIconditions. In other embodiments, the control circuit 102 may be locatedat a location remote from the retail store and/or from the one or moreinventory databases 106. For example, the control circuit is coupled tothe inventory databases 106 via the link 112, which is a wide areanetwork or other wired and/or wireless network connection. In someembodiments, the control circuit 102 is at a separate location than thelocation of the inventory control system 104, i.e., the control circuitis a centralized system for determining and quantifying overstated PIconditions. For example, the control circuit 102 is coupled to theinventory control system 104 via the link 110 which is a wide areanetwork or other wired and/or wireless network connection. In someembodiments, the control circuit is at the site or location of theinventory control or is part of the inventory control (such as shown bydashed box 108). The inventory control system 104 functions as theinventory management system for one or more retail stores, and may beresponsible for at least forecasting, ordering and replenishingproducts. In some embodiments, the control circuit 102 (and/or one orboth of the inventory control system 104 and the inventory database 108)may be implemented as multiple cooperating and/or redundant controlcircuits. In some embodiments, the control circuit 102 (and/or one orboth of the inventory control system 104 and the inventory database 108)may be implemented in a distributed environment in which multiplenetworked control circuits (or portions thereof) at one or morelocations each perform at least a portion of the tasks/computations andshare and coordinate with each other to determine and quantifyoverstated PI conditions. It is understood that the control circuit maybe configured to determine whether an overstated PI condition existswith respect to one or more items of inventory in one or more retailspaces.

FIG. 2 illustrates one embodiment of a control circuit such as generallyshown in FIG. 1 The control circuit 200 includes a processor 202, amemory 204, an input/output (I/O) interface 206 (e.g., a backendinterface) and an optional user interface 208 a frontend interface).Generally, the memory 204 stores the operational code or set ofinstructions that is executed by the processor 202 to implement thefunctionality of the control circuit. The memory 204 also stores anyparticular data that may be needed to make any of the determinationsand/or corrections described herein. Such data may be pre-stored in thememory or be received, for example, from the one or more inventorydatabases 106 and/or the inventory control system 104 during use. It isunderstood that the processor 202 may be implemented as one or moreprocessor devices as are well known in the art. Similarly, the memory204 may be implemented as one or more memory devices as are well knownin the art, such as one or more processor readable and/or computerreadable media and can include volatile and/or nonvolatile media, suchas RAM, ROM, EEPROM, flash memory and/or other memory technology.Further, the memory 204 is shown as internal to the system 200; however,the memory 204 can be internal, external or a combination of internaland external memory. Additionally, the control circuit may include apower supply (not shown) or it may receive power from an externalsource.

The processor 202 and the memory 204 may be integrated together, such asin a microcontroller, application specification integrated circuit,field programmable gate array or other such device, or may be separatedevices coupled together. The I/O interface 206 allows communicationalcoupling of the control circuit to external components, such as theinventory databases 106, the inventory control system 104 and/or anyuser devices. Accordingly, the I/O interface 206 may include any knownwired and/or wireless interfacing device, circuit and/or connectingdevice. In some embodiments, a user interface 208 is included in thecontrol circuit 200 which may be used for user input and/or outputdisplay. For example, the user interface 208 may include any known inputdevices, such a buttons, knobs, selectors, switches, keys, touch inputsurfaces and/or displays, etc. Additionally, the user interface 208 mayinclude one or more output display devices, such as lights, visualindicators, display screens, etc. to convey information to a user, suchas an overstated PI condition and/or a quantification of that overstatedPI condition. While FIG. 2 illustrates the various components beingcoupled together via the processor 202, it is understood that thevarious devices may actually be coupled to a communication bus of thecontrol circuit 200 to which the processor 202 and/or memory 204 mayalso be coupled.

Generally, the control circuits 102 and 200 can comprise a fixed-purposehard-wired platform or can comprise a partially or wholly programmableplatform. It is also noted that one or more components of the controlcircuit 200 may be implemented in a monolithic or distributed manner.These architectural options are well known and understood in the art andrequire no further description here. These control circuits 102 and 200are configured (for example, by using corresponding programming as willbe well understood by those skilled in the art) to carry out one or moreof the steps, actions, and/or functions described herein.

Referring next to FIG. 3, a diagram is shown which illustrates anexemplary situation in which an on hand item inventory level may beaccurate in accordance with several embodiments. In this example, cyclicsales data is used to plot a true on hand (TOH) inventory value of aparticular inventory item over time. As seen in line 302, the true onhand value decreases as items are sold over time until a specified orderpoint (OP) number is reached, at which point replenishment of the itemoccurs. In this example, replenishment occurs when the TOH value reaches15 units. However, a period of time elapses before the replenishmentarrives at the store which corresponds to the delivery period (DP);thus, line 302 continues to decrease during the delivery period untilthe replenishment arrives, e.g., decreases to a TOH value of 6. Then,the TOH value is adjusted by the received shipment and the TOH decreasesaccording to line 304. Similarly, the TOH value decreases over timeuntil the order point (OP) is reached and more replenishment is ordered.The TOH will continue to decrease during the delivery period (DP) untilthe replenishment arrives. This cycle continues in the example lines 306and 308. Generally, in some embodiments, this cycle follows the formulaDD×LT+DD≦OP, where DD is the daily demand in terms of units, LT is thelead time in time and OP is the order point. FIG. 3 illustrates a casewhere the PI is possibly accurate meaning that the PI in the systemequals the TOH value.

Referring next to FIG. 4, a diagram is shown which illustrates anexemplar situation in which an on hand item inventory level may beoverstated in accordance with several embodiments. In this diagram, theamount of inventory known to the system for a given item is more thanthe actual number of inventory items. In the example of FIG. 4, cyclicsales data is used to plot the perpetual inventory of a particular item,shown as a false on hand (FOH) inventory value of a particular inventoryitem over time. As seen in line 402, the false on hand value decreasesas items are sold over time until a specified order point (OP) number isreached, at which point replenishment of the item occurs. In thisexample, the replenishment occurs when the FOH value of line 402 reachesa value of 15 units; however, at this point, the TOH is actually 6units, not 15 units. Again, there is a time delay between ordering andarrival of the replenishment. Thus, the FOH value will continue todecrease below the FOH value of 15. In some embodiments where there isoverstated PI, before the replenishment occurs, sales of the item willstop for a period of time indicated by flat line 404. This is becausewhile the system thinks there is a positive on hand value (e.g., FOH is9 units), the true on hand value is zero and thus, no more units can besold until the replenishment arrives. Once replenished, sales willresume as indicated by line 406. As sales continue, the FOH valuedecreases until the order point is reached and another replenishment isordered. Again, in the overstated PI condition, before the replenishmentoccurs, the FOH value will decrease and then stop at a non-zero valueand there will be no further sales. This is indicated at flat line 408.At this point, the system thinks again there are 9 units of the item ininventory, but there is actually 0 items. Sales resume oncereplenishment occurs as shown by line 410. As sales continue, the FOHvalue decreases until the order point is reached and anotherreplenishment is ordered. At the order point, the system thinks thereare 15 units in inventory, but there are actually only 6 units. Again,in the overstated PI condition, before the replenishment occurs, the FOHvalue will decrease and then stop at a non-zero value and there will beno further sales indicated at flat line 412.

It is in the analysis of this cyclic sales data (e.g., units sold perperiod of time and/or on hand values over time) for an item of inventorythat the system can automatically determine a likelihood that anoverstated PI condition exists. For example, a control circuit canreceive sales data and/or inventory data over time and make adetermination that an overstated perpetual inventory (PI) conditionexists with respect to an inventory level of the item at the retailstore by determining that, a plurality of times, an item for sale sellsto a non-zero inventory quantity value and then stops selling for aperiod of time. In the simple example of FIG. 4, the control circuit candetermine that the item sold to a non-zero value of 9 multiple times andeach time there was a corresponding period of no sales prior toreplenishment. Accordingly, the control circuit automatically determinesthat an overstated PI condition exists. Further, in some embodiments,the control circuit automatically quantifies the condition, e.g., asbeing overstated by 9 units. Knowing the amount of the overstatement,the appropriate corrections may be automatically made to eliminate orreduce the severity of the overstated PI condition.

It is understood that there may be errors and other factors such thatthe non-zero value that the items sells down to before the period of nosales may not always be the same non-zero value. That is, in someembodiments, the inventory level of the items sells within a definedtolerance of the non-zero inventory quantity value and then stopsselling for a period of time. For example, the control circuit maydetermine that the item sells to 9 units in the first cycle, sells to 10units in the second cycle, then sells to 8 units in the third cycle. Itis understood that the tolerance may vary based on the item andlorproduct category being evaluated. Accordingly, given tolerances, thecontrol circuit identifies the non-zero quantity level as a quantitylevel of one of the cycles, e.g., the first non-zero quantity level isused, or the most frequently occurring non-zero quantity level.

In some embodiments, store processes can affect the determinations madeby the control circuit. For example, store processes that manually or byother means change the on hand values may influence the automaticdeterminations. If such store processes correct any overstated PIconditions, the patterns may no longer be identified.

In some embodiments, the more times sales of the item fit the patternillustrated in FIG. 4, the determination that an overstated PI conditionexists will be more accurate. Furthermore, in some embodiments, thevelocity of sales can contribute to the likelihood that any overstatedPI condition is accurate. For example, a slow selling item may be moreinfluenced by incremental or other errors or store processes, whereas afast selling item may be easier to identify overstated PI conditions.

In some embodiments, the control circuit identifies the occurrence ofthe pattern at least twice to provide reliable automatic determinationsof overstated PI conditions. It is possible that a similar pattern maybe detected once but this does not necessarily mean with reliabilitythat an overstated PI condition exists. That is, there may be otherexplanations or events that may result in a single pattern detection oridentification. However, detection or identification of the pattern atleast twice provides a reliable indication that, the overstated PIcondition exists. For example, in some embodiments, as the number ofidentified pattern repetitions increases, the more reliable thedetermination that an overstated PI condition exists. Furthermore, insome embodiments, the identification of multiple occurrences of thepattern increases the accuracy of the quantification of the overstatedPI condition at the non-zero value.

Reference is now made to the flow diagram of FIG. 5 which illustrates aprocess occurring at a control circuit (e.g., control circuits 102and/or 200) coupled to one or more inventory databases in accordancewith several embodiments. The process of FIG. 5 may be performed by oneor more of the systems, devices and applications described herein.

Generally, the control circuit uses (or is configured to use) at leastsales and/or inventory information received from the databases 106 toautomatically determine whether an overstated PI condition exists. Insome embodiments, the amount of the overstated PI is automaticallyquantified and may be corrected.

In Step 502, the control circuit receives on hand quantity values of theitem at the retail store over time. For example, the data may bereceived from remote store locations or from within a local inventorysystem. The data may be received for one or more of many items for sale.The inventory databases may be queried for sales data for specificproducts over a period of time in the past to the present (e.g.,historical data), or may be received in an ongoing manner over time(e.g., daily). Further, in some embodiments, data may be received forcertain products exceeding a price threshold or other filteringthreshold/s. Various parameters and/or inputs may be used to select thedata for processing. For example, parameters may define one or more ofthe item for analysis, the period of time to consider sales, a minimumitem price to consider, and the number of times to look for patternrepetition. Further, various inputs for processing may be used includinginputs to define one or more of the store where the item is sold, theitem being sold, and on hand values for the item.

This inventory data/cyclic sales data is automatically processed by thecontrol circuit to determine that, a plurality of times, an item forsale at a retail store sells within a defined tolerance of a non-zeroinventory quantity value and then stops selling for a period of time(Step 504). It is understood that the number of the plurality of timesmay be variable (i.e., the number of pattern repetitions), but, that itis preferred that the number of times be two or more. In someembodiments, the tolerance about the non-zero inventory quantity levelmay be item dependent, e.g., input by a user input or defined in thesystem. For example, the tolerance may be higher for an item that thathas an inventory in the hundreds and daily sales in the tens compared toan item having an inventory in the tens and daily sales in the ones, forexample. In some embodiments, the length of the period of time (e.g., indays) that the item stops selling may be item dependent, input by a userinput or defined in the system. For example, some items may haveconsistent and high sales volumes such that the control circuit mayidentify a short period of time of no sales to identity the pattern.Further, high sales velocity may result in a short period of timeindicating the pattern. Given, that the pattern repeats, the item willbegin reselling once replenished.

Next, the control circuit makes a determination that an overstatedperpetual inventory (PI) condition exists with respect to an inventorylevel of the item at the retail store (Step 506). In some embodiments,it is the recognition of the repeated pattern of selling within atolerance of the non-zero value and then not selling that indicates theoverstated PI condition. As the number of cycles increases, the accuracyof the determination increases. In some embodiments, the control circuitoutputs one or more outputs, such as one or more of the item, the storewherein the item is being sold, and an indication of an overstated PIcondition.

It is noted that in some embodiments, steps 504 and 506 are performedfor a single item of inventory. In other embodiments, the processing tomake the determinations of steps 504 and 506 are performed for manyitems either at the same time or substantially the same time and/orcontemporaneously as understood during automated processing. Forexample, in some embodiments, on hand inventory quantity values aremonitored for each of a plurality of items for sale by a retail storeover time. Accordingly, these values are processed to look for salespatterns indicated in step 504 for one or more of the items in order tomake one or more determinations of step 506. For example, in someembodiments, the processing that may result in the performance of steps504 and 506 occurs automatically and regularly for at least 100different items for sale by the retail store; or for at least 1,000different items for sale by the retail store; or for at least 10,000different items for sale by the retail store.

Furthermore, in some embodiments, the amount of the overstated PI isautomatically quantified by the control circuit. Once it is determinedthat an overstated. PI condition exists, the control circuit thenprovides a signal causing an adjustment of an on-hand inventory quantityvalue for the item at the retail store by the non-zero inventoryquantity value (Step 508). For example, using one or more of theembodiments described herein, an amount of the overstatement of the PIis automatically determined. In the example of FIG. 4, a signal would beoutput to cause the PI level to be decreased by 9 units so that the PIwould then represent the true on hand (TOH) value. Again, it isunderstood that there may be daily or other periodic errors in the PI ofthe system and given the tolerances such that even as adjusted, the PImay still not exactly match the TOH, but the PI value will be muchcloser to the actual TOHvalue. This results in more efficient inventorycontrol and reduces the likelihood of lost sales and other problemsassociated with overstated PI.

It is noted that the techniques described herein apply to determinationsof overstated PI conditions in any retail store setting or other settingwhere an inventory of items is stored and used in inventory managementprocesses, such as forecasting, ordering and/or replenishment. As such,in some embodiments, the processes may apply to retail sales in atraditional retail store, such as a “brick and mortar” store. In otherembodiments, the processes apply to inventory management in an online orremote ordering “store” in which inventory is maintained remote of theconsumer shopping location, e.g., managing inventory of local and/orregional distribution centers or other inventory storage locations foronline or remote sales transactions.

Referring next to FIG. 6, an exemplary algorithm 600 to implement anoverstated PI determination process is illustrated in accordance withsome embodiments. In this algorithm, several parameters are consideredwhen the control circuit attempts to identify sales patterns potentiallycorresponding to overstated PI conditions including: (1) a time period“N” of the historic data used to identify events or patterns or how farto look back in the sales/inventory data, e.g., the length of time onthe x-axis in FIGS. 3/4 (e.g., in days or number of weeks or othersuitable period); (2) a minimum time period “t” to consider for no salesbefore triggering the determination of whether the period qualifies fora no sales pattern, e.g., the minimum time for the period of flat lines404, 408, and 412 in FIG. 4. (e.g., in days or other suitable period);(3) a filtering price “p” useful to process items above the price p; and(4) a pattern count “c” defining the minimum repetitions of the no salespattern. Note that in some embodiments, not all “no sales periods' mayqualify for a pattern; only those ‘no sales periods’ that satisfy someother conditions based on length of no sales and/or the expected salesqualify for ‘no sales pattern”. It is noted that in some embodiments,one or more or all of these parameters may be used to obtain thesales/inventory data for analysis. It is understood that in otherembodiments, additional parameters may be used as well. These parametersmay be input by a user via an appropriate user interface or may bestored as default values by the control circuit.

In the example algorithm 600, the following variables {<s, i, oh, ts>}are input to the control circuit for processing: (1) “s” defines theretail store; (2) “i” defines the item for Which the PI is beingexamined; (3) “oh” is the on hand inventory quantity value for the itemas retrieved from the inventory database; and (4) “ts” is the time stampof the oh value. This data is processed and an output is generated as alisting {<s, i, [d₁, d₂, . . . ,]>} where (1) “s” indicates the store;and (2) “i” indicates an overstated PI condition (3) during time periodsd₁, d₂, . . .

The algorithm 600 includes the following hash tables “lastOnHand”,“periodActive”, “marked”, “overstatedOnHand”, “frequencyOverstated” and“timePeriods”, and Hash Set “potentialOverstatedItems”. The exampleRun-time is expected to be linear in the input list size. The examplespace needed is linear depending on the number of items. The process andfunctionality of the embodiments of the process indicated by the abovealgorithm are apparent to those of ordinary skilled in the art.Furthermore, one of ordinary skill in the art can write the appropriatesource code to implement this functionality and other functionalitydescribed herein.

Referring next to FIG. 7, another exemplary algorithm 700 to implementan overstated PI determination process is illustrated in accordance withsome embodiments. In this further exemplary algorithm 700, at least someof the variables from FIG. 6 are similarly used. In some embodiments,the algorithm 700 assumes that all input, tuples <s, i, oh, ts> for itemi are considered in the increasing sequence of timestamps ts. Thealgorithm 700 also includes a stack of records “recordStack[s, i]” forstoring possible no sales patterns e.g., flat lines 404, 408, 412). Asis well understood in the art, a stack is a standard data structure inwhich the last inserted record is the first one to be removed during thedeletion operation, i.e., a stack supports LastInFirstOut property. Whenall the input tuples <s, i, oh, ts> corresponding to item i areconsidered, the stack recordStack[s, i] holds the no sales patterns forthis item during the time period N. Again, the example run-time isexpected to be linear in the input list size and the example space isexpected to be linear in the number of items. The process andfunctionality of the embodiments of the process indicated by thealgorithm 700 are apparent to those of ordinary skilled in the art.Furthermore, one of ordinary skill in the art can write the appropriatesource code to implement this functionality and other functionalitydescribed herein.

In some embodiments, systems, apparatuses and methods are providedherein useful to automatically determine whether an overstated perpetualinventory (PI) condition exists regarding an inventory level of an itemin a retail establishment. In some embodiments, a method performed by acontrol circuit comprises determining that, a plurality of times, anitem for sale at a retail store sells within a defined tolerance of anon-zero inventory quantity value and then stops selling for a period oftime; and to making a determination that an overstated perpetualinventory (PI) condition exists with respect to an inventory level ofthe item at the retail store. In some embodiments, an apparatuscomprises a control circuit and a memory coupled to the control circuitand storing computer instructions that when executed by the controlcircuit perform the above steps.

In some embodiments, a method performed by a control circuit comprisesmonitoring on hand inventory quantity values for each of a plurality ofitems for sale by a retail store over time; determining that, aplurality of times, one or more of the plurality of items sells within adefined tolerance of a non-zero inventory quantity value correspondingto each of the one or more of the plurality of items and then stopsselling for a period of time; and making a determination that anoverstated perpetual inventory (PI) condition exists with respect to aninventory level of the one or more of the plurality of items at theretail store. In some embodiments, an apparatus comprises a controlcircuit and a memory coupled to the control circuit and storing computerinstructions that when executed by the control circuit perform the abovesteps.

Those skilled in the art will recognize that a wide variety of othermodifications, alterations, and combinations can also be made withrespect to the above described embodiments without departing from thescope of the invention, and that such modifications, alterations, andcombinations are to be viewed as being within the ambit of the inventiveconcept.

What is claimed is:
 1. A method comprising: by a control circuit,determining that, a plurality of times, an item for sale at a retailstore sells within a defined tolerance of a non-zero inventory quantityvalue and then stops selling for a period of time; and making adetermination that an overstated perpetual inventory (PI) conditionexists pith respect to an inventory level of the item at the retailstore.
 2. The method of claim 1 further comprising, by the controlcircuit, providing a signal causing an adjustment of an on-handinventory quantity value for the item at the retail store by thenon-zero inventory quantity value.
 3. The method of claim 1 wherein eachof the plurality of times, the item begins reselling after beingreplenished.
 4. The method of claim 1 wherein the period of time may beselected and corresponds to a number of days.
 5. The method of claim 1wherein one or both of the period of time and the defined tolerance isdependent on the item.
 6. The method of claim 1 further comprising, bythe control circuit, receiving on hand quantity values of the item atthe retail store over time, wherein the on hand quantity values are usedin the determining step.
 7. The method of claim 1, further comprising,by the control circuit, selecting the item from a plurality of itemsbased on a sales price of the item exceeding a price threshold.
 8. Themethod of claim 1, further comprising, by the control circuit, receivinga first parameter indicating the item, a second parameter defining theperiod of time, a third parameter defining a minimum price of the item,and a fourth parameter defining the plurality of times, wherein theparameters are used in the determining step.
 9. The method of claim 1further comprising, by the control circuit, receiving a first inputdefining the retail store, a second input defining the item, and thirdinputs defining on hand quantity values over time, wherein the inputsare used in the determining step.
 10. The method of claim 1 furthercomprising, by the control circuit, providing a first output indicatingthe retail store, a second output indicating the item, and a thirdoutput indicating the overstated PI condition.
 11. The method of claim 1further comprising, by the control circuit, identifying the non-zeroquantity value as a quantity level that the items sells to and stopsselling for the period of time corresponding to one of the plurality oftimes.
 12. A method comprising: by a control circuit: monitoring on handinventory quantity values for each of a plurality of items for sale, bya retail store over time; determining that, a plurality of times, one ormore of the plurality of items sells within a defined tolerance of anon-zero inventory quantity value corresponding to each of the one ormore of the plurality of items and then stops selling for a period oftime; and making a determination that an overstated perpetual inventory(PI) condition exists with respect to an inventory level of the one ormore of the plurality of items at the retail store.
 13. The method ofclaim 12 wherein the plurality of items comprises one or more of: atleast 100 different items for sale by the retail store; at least 1,000different items for sale by the retail store; and at least 10,000different items for sale by the retail store.
 14. The method of claim 12further comprising, by the control circuit, providing a signal causingan adjustment of an on-hand inventory quantity value for the one or moreof the plurality of items at the retail store by the non-zero inventoryquantity value.
 15. An apparatus comprising: a control circuit; a memorycoupled to the control circuit and storing computer instructions thatwhen executed by the control circuit perform the follows steps:determine that, a plurality of times, an item for sale at a retail storesells within a defined tolerance of a non-zero inventory quantity valueand then stops selling for a period of time; and make a determinationthat an overstated perpetual inventory (PI) condition exists withrespect to an inventory level of the item at the retail store.
 16. Theapparatus of claim 15 further comprising a database accessible by thecontrol circuit, the database storing on hand inventory quantity valuesat different points in time for the item at the retail store.
 17. Theapparatus of claim 15 wherein the control circuit and memory are locatedat the retail store.
 18. The apparatus of claim 15 wherein the controlcircuit and memory are located at a central location remote from theretail store.
 19. The apparatus of claim 15 wherein the control circuitis configured to provide a signal causing an adjustment of an on-handinventory quantity value for the item at the retail store by thenon-zero inventory quantity value.
 20. The apparatus of claim 15 whereineach of the plurality of times, the item begins reselling after beingreplenished.
 21. The apparatus of claim 15 wherein the period of timemay be selected and corresponds to a number of days.
 22. The apparatusof claim 15 wherein one or both of the period of time and the definedtolerance is dependent on the item.
 23. The apparatus of claim 15wherein the control circuit receives on hand quantity values of the itemat the retail store over time, wherein the on hand quantity values areused to determine that, the plurality of times, the item sells withinthe defined tolerance of the non-zero inventory quantity level.
 24. Theapparatus of claim 15 wherein the controlcircuit receives a first inputdefining the retail store, a second input defining the item, and thirdinputs defining on hand quantity values over time, wherein the inputsare used to determine that, the plurality of times, the item sellswithin the defined tolerance of the non-zero inventory quantity level.25. The apparatus of claim 15 wherein the control circuit provides afirst output indicating the retail store, a second output indicating theitem, and a third output indicating the overstated PI condition.
 26. Theapparatus of claim 15 wherein the control circuit identifies thenon-zero quantity value as a quantity level that the items sells to andstops selling for the period of time corresponding to one of theplurality of times.
 27. An apparatus comprising: a control circuit; amemory coupled to the control circuit and storing computer instructionsthat when executed by the control circuit perform the follows steps:monitor on hand inventory quantity values for each of a plurality ofitems for sale by a retail store over time; determine that, a pluralityof times, one or more of the plurality of items sells within a definedtolerance of a non-zero inventory quantity value corresponding to eachof the one or more of the plurality of items and then stops selling fora period of time; and make a determination that an overstated perpetualinventory (PI) condition exists with respect to an inventory level ofthe one or more of the plurality of items at the retail store.